Tetra Tech Inc (TTEK)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 273,420 | 263,125 | 232,810 | 173,859 | 158,668 |
| Total stockholders’ equity | US$ in thousands | 1,403,430 | 1,183,090 | 1,234,240 | 1,037,320 | 989,286 |
| ROE | 19.48% | 22.24% | 18.86% | 16.76% | 16.04% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $273,420K ÷ $1,403,430K
= 19.48%
Tetra Tech Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. In the most recent fiscal year ending September 30, 2023, the company's ROE stood at 19.48%, reflecting a slight decrease from the previous year's 22.24%. However, it is worth noting that the ROE for 2023 remains at a relatively healthy level.
Looking further back, Tetra Tech's ROE has generally been on an upward trajectory since 2019 when it was 16.04%. The consistent improvement in ROE between 2019 and 2022 suggests that the company has been effectively utilizing its equity to generate profits for shareholders.
While the slight decline in ROE for 2023 may raise questions about the company's ability to maintain its profitability levels, it is essential to consider external factors that may have influenced this metric. Overall, Tetra Tech Inc's ROE trend indicates a satisfactory performance in terms of generating returns for its equity holders, although monitoring future developments in this ratio would be prudent for a comprehensive analysis of the company's financial health.
Peer comparison
Sep 30, 2023